5 Common Terms in the Digital Marketing World that You Need to Understand
It is only natural for entrepreneurs to take advantage of technological developments to develop their business. One of them, technological developments are used for strategies, efforts, or business marketing tips. In recent years, many businesses have taken advantage of digital marketing in their marketing tips. However, of course, before applying it, you as a businessman need to understand the terms contained in Digital Marketing.
Have you considered utilizing Artificial Intelligence (AI) features in your marketing campaign? Are you using keyword relevance to improve your Search Engine Optimization (SEO) results? Do you know what the Lookalike Audience feature is on the Facebook advertising platform? Are you optimizing your AdWords ranking by increasing your Quality Score?
These terms are familiar in the world of digital marketing in this century. In more detail, here are five terms commonly heard in the world of digital marketing that you need to know!
Artificial Intelligence (AI)
AI is one of the terms of Digital Marketing which started to be popular from around 2017. However, AI technology itself is increasingly developing and easier to use by users, especially in marketing practices. To put it more specifically, AI is a field of computer science that emphasizes the creation of intelligent machines that work and react like humans. With AI, activities such as speech recognition response, planning, and problem-solving related to business and marketing can now be automated.
However, what does AI mean for digital marketing? Many people suspect that marketers who are starting to use AI will benefit enormously. AI can work effectively to improve business marketing performance.
3 Stages of AI-Generated Consumer Experience
Attract consumers’ attention
Natural language processing (NLP) and generalizing natural language (NLG) used in AI can automate and accelerate the creation of content strategies for marketing needs. The content created is expected to attract consumers’ attention to buy your business products.
AI systems can personalize and test landing pages and increase marketing conversions. Landing pages are web pages that customers automatically visit when they click on AdWord, AdBanner, and other types of digital advertising that you create. Conversion is the result of a web or social media visitor’s decision to buy your products or services when they finish visiting your business’s web or social media.
Provide customer satisfaction
AI’s features can enhance the customer experience by giving buyers a lot more information than they want.
These terms serve to provide the right content at the right time based on the preferences of a potential client or customer. By using consideration of target customer behavior and generating brand awareness, Contextual Marketing provides more effective results for business marketers. This increases the accuracy of your ad targeting based on information from the public such as recent search results and web history commonly accessed through search engines such as Google and others. The goal is clearly to offer your business products and services to target customers.
Benefits of Contextual Marketing for Marketers:
You as a marketer do not need large investment funds. You only need to collect the right data in a tool commonly called Customer Relationship Management (CRM).
By focusing on specific behaviors and demographics, you can give your business prospects a time when the prospect will make a buying decision.
Enhanced User Experience
Contextual Marketing is highly personalized, marketing messages are delivered to consumers promptly and positioned strategically. This is more efficient than you “bombarding” them with marketing messages they don’t want.
Increased Customer Engagement
You can not only introduce your brand in front of customers. But you can encourage active customer participation in your brand by leveraging Contextual Marketing.
Does Not Disturb Consumers
With the right timing and conditions, your marketing tips will not look like regular advertising. Instead, your marketing message will emerge as a solution to consumer problems.
Greater Sales and Income
Your marketing is conditioned and personalized to the right target, the conversion rate will be higher and sales will increase.
Cost Per Acquisition (CPA)
CPA is a measure of the cost of acquiring customers who click on links and carry out purchase activities on your business website. In other words, CPA is the return on marketing investment, specifically, the total expenditure on digital marketing over the total front-end conversions. The following is a specific definition of BPA:
- CPA is a sales and lead-based measurement that differs from the meaning of Cost per Impression (BPI) and cost per click (CPC). While BPI and CPC are based on public traffic, BPA is based on Lead Generation actions. Lead Generation itself is an effort to attract and convert potential customers into regular customers of your business.
- Although not identical, CPA is equivalent to Return On Investment (ROI) because CPA can be an early indicator of the success of a long-term Digital Marketing campaign related to Lead Generation.
CPA is an average value so it covers the entire strategy. The smaller the better. Understanding the consumer buying journey and digital funnel is the first step in strategizing an effective digital marketing campaign. Every campaign has a purpose, so some should have a high or even zero CPA because their goal is not to sell but to attract leads or a remarketing base.
The Lookalike Audience feature on the Facebook platform is an advanced customer targeting option in terms of advertising services that go beyond the basic capabilities of targeting based on interests, behavior, and demographic data. Lookalike Audience gives you the ability to find new people based on how similar they are to your repeat customers by using a sample percentage of people in your country or local area of business.
Lookalike Audience feature
- Facebook users watch about 100 million hours of video on Facebook every day. Similar to AI, this feature will automatically find customers who are watching videos like your business’s marketing videos.
- Set up prospects who are similar to the customers on your business email list and use them as a source for finding similar potential customers.
- Find potential customers who are similar to repeat customers who like your business’s Facebook page. If you have a large number of Facebook page fans and they are actively engaged with your posts, the Lookalike Audience is a great tool for finding similar target potential customers.
Quality Score is a ranking from Google AdWords that provides a summary of data on the relevance and quality of the keywords used in Pay Per Clicks (PPC) campaigns. Most of the Quality Score is determined by the expected Click-Through Rates (CTR), Ad copy relevance, landing page quality and relevance, and other factors. Understanding your business’s Quality Score is important, because:
- If you increase your Quality Score, it can lower your Business Cost per Click (CPC).
- When your CPC goes down, it can lower your Cost per Conversion
- If you lower your Cost per Conversion, it can increase your revenue and help you lower your Cost per Acquisition (CPA)
The ad with the top position can certainly have a high-Quality Score. Conversely, a low-Quality Score can make the ad’s position low or even not appearing at all.
Here are five general digital marketing terms that you need to know and understand. The main goal is clear to be able to reduce the CPA and increase conversions that lead to increased business revenue.
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